Tuesday, July 21, 2009

Hedge funds raising new capital

With improved performance and continued strong outperfomance against the equity markets (see Buffett's bet gone wrong) hedge funds are able to raise money again.

From Hedge Fund Research:

Assets invested in the hedge fund industry increased by $100 billion in the second quarter of 2009, ending at $1.43 trillion...

The Fund of Funds sector however continues to struggle. Looks like in the post-Madoff world institutions want to do more of their own allocations, figuring they can rely on their own due diligence or on consultants (like Aksia), rather than paying a fund of funds. From Bloomberg:

Investors took $33 billion from funds that invest in other hedge funds in the second quarter. Assets in those pools fell to $530 billion from a peak of $825 billion in middle of 2008.